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Generational Wealth: More Than a Day’s Journey for the Average Black Family

from OneNation Media Services
Published July 28, 2017

DETROIT, MICHIGAN (OneNation Media Services) – (July 28, 2017) – It’s been said that the more things change, the more they stay the same. If true, that would be disastrous for the long-term economic well-being of the majority of African Americans. Absent meaningful policy changes such as reforming the U.S. tax code, the prospect of building generational wealth for the average black family would get pushed further into the future – 228 years to be exact, according to a report published by the Institute for Policy Studies (IPS) and the Corporation For Economic Development (CFED).

In the August 2016 report, Ever-Growing Gap the authors focused on the fundamental role that wealth plays in achieving financial security and opportunity, and concluded that the growing wealth divide between white families and families of color is no accident. The authors contend that the state of economic affairs for the average Black or Latino family is the result of public policy designed to widen the economic gap between white households and households of color and between the wealthy and everyone else. Further, the authors determined that the nation’s ongoing recovery from the Great Recession has bypassed millions of Americans, especially households of color.

“We used to own our land and conduct business with other Black business owners, but now things have changed,” said Royce Esters, President and CEO of the National Association for Equal Justice in America. (NAEJA)

“Compton used to be like Black Wall Street in Oklahoma. There was a Black business association with 500 members. When something happened, we would all come together to help each other. We constantly preached Black capitalism and we traded with each other,” said Esters who has been an accountant based in Compton since 1964.

Believing that the lack of affordable housing is the primary barrier preventing Blacks from moving up the social and economic ladder, NAEJA is hosting an affordable housing summit in Los Angeles on August 19.

“If you have shelter, you have a chance to survive. If you don’t have a place to live, you’ll get into trouble. And, when you sell your home and leave the neighborhood, you lose your economic power.”

“I believe the next revolution will be a revolt against homelessness,” Esters said.

Other key findings of the report include:

  • Over the past 30 years the average wealth of white families has grown by 84%—1.2 times the rate of growth for the Latino population and three times the rate of growth for the black population.
  • By 2043 – the year in which it is projected that people of color will make up a majority of the U.S. population – the wealth divide between white families and Latino and black families will have doubled, on average, from about $500,000 in 2013 to over $1 million.
  • If average black family wealth continues to grow at the same pace it has over the past three decades, it would take black families 228 years to amass the same amount of wealth white families have today. That’s just 17 years shorter than the 245-year span of slavery in this country. For the average Latino family, it would take 84 years to amass the same amount of wealth White families have today – that’s the year 2097.

E-Commerce to the Rescue

E-Commerce is the third best industry for starting a business, according to USAToday’s list of Top 5 Industries for 2017. It is an industry that anyone, and I mean anyone, can start for just a very small investment. Some “Ecompreneurs” start with less than $50 and go to yard sales or thrift stores to find little treasures they can turn for a profit, while others start for several hundred dollars and buy items from overseas.

Importing items from overseas has become a very simple process with the speed of the internet and modern technology. A laptop and a cell phone comprise the complete business office of many importing Ecompreneurs.

They simply do a search for a product, find it from an overseas company, then contact that company via What’sApp or email, complete their purchase and have the items sent to their home where they are able tore-sell it online or via one of the many selling apps. Gone are the days of spending hundreds of thousands of dollars to open a business that will probably not profit within the first 3 years or which, statistically will be closed by the end of the first 5years. For those individuals willing to think outside the box and put a little sweat equity into their week instead of watching t.v. for 2 hours per day, this may be a gem of a possibility!

I was able to start my E-comm business with $800 and turn that into over $80,000 within one year’s time. It was actually one of the most exciting and fun projects I have ever done and it has proven to be an amazing, life-changing and family-changing journey.

There’s a quote that says “What you do today affects seven generations into the future.” What are you doing to ensure the financial well-being of your great-great-great-great-great-grandchildren??


Author Information

**Dr. Kelli is a mother, author, educator, investor and now Ecompreneur. She offers coaching courses and even trips overseas to learn how to start your own business and build the wealth you and your family deserve! For more information contact her at suncorp21st@gmail.com or (909) 957-2327

What Is The Black Community’s National Agenda?

Photo: Courtesy of National Park Service, Maggie L. Walker-National Historic Site “Let’s make America Great Again”

By Dr. P.R. Pryor
TCP Enterprises International
Community, Business & Personal Empowerment

On April 3, 1968, Dr. Martin Luther King Jr. gave his famous speech entitled “I’ve Been to the Mountaintop” in Memphis. In it, King urged African Americans to put their money in Black-owned banks. It wasn’t his most famous line, but the message was clear: “We’ve got to strengthen Black institutions. I call upon you to take your money out of the banks downtown and deposit your money in the Tri-State Bank. We want a ‘bank-in’ movement in Memphis … We begin the process of building a greater economic base.”

The next day, King was assassinated and his hope of harnessing Black wealth remains unfulfilled. Before integration, African Americans in cities like Richmond, Chicago and Atlanta relied on Black community banks, which were largely responsible for providing loans and boosting Black businesses, churches and neighborhoods. After desegregation, Black wealth started to hemorrhage from these communities. White-owned banks were forced to open their doors to African Americans and the money that once flowed into Black banks and back out to Black communities ended up on Wall Street and other banks farther away. (The Atlantic)

Although today there are 206 million African American-owned businesses; a 34% increase ranging from 2007 to 2012; 109,000 of which have paid employees (4.2%); and 205 million that are non-employer firms (95.8%) combined are averaging $150 billion in annual receipts. Here lies the deficit; only a small percentage of the African American dollar is being invested, spent or recycled back into African American communities. The monies are instead spent in white-owned business and ultimately support white communities.

What is the Black Community’s National Agenda?

The Black Community’s National Agenda should be of course to obtain “Black Wealth,” sustainable wealth. What is the strategy or formula? Perhaps it should be taken from a page in history, reflective of one of the most prominent concentrations of African American businesses in the United States. In order to validate the fact that “Black wealth,” in addition to thriving Black communities, is attainable, as was successfully accomplished in the days of “The Black Wall Street of America” aka, The Greenwood District of Tulsa, which became a nationally renowned entrepreneurial center in the early 1920s. (read the history on Black Wall Street)

Fast forward the year is now 2017; the average Black dollar is recycled in the Black community on an average of only 3 times, verses those dollars circulated through Black-owned businesses and Black communities during the days of the infamous “Black Wall Street” on average of 36 to 100 times prior to it leaving the Black community.

To obtain wealth, you must re-invest…

Dr. Claud Anderson, President of PowerNomics Corporation of America, Inc. and the Harvest Institute, gives us insight concerning Black Empowerment and Exceptionalism. PowerNomics is a company which publishes books and produces multimedia presentations depicting the strategies and concepts of Dr. Anderson, surrounding acquiring and sustaining Black wealth. Below is a model of Dr. Claud Anderson’s Hierarchy of Black Wealth:

THE HIERARCHY OF BLACK WEALTH
As taught by Dr. Claud Anderson

Hierarchy of Black Wealth pyramid

  • EDUCATION – The process of receiving or giving systematic instruction, especially at a school or university; an enlightening experience
  • BLACK MEDIA OUTLETS – Controlled Images that our community sees
  • LAW ENFORCEMENT – Engage your legislators / politicians to change laws that affect Black communities
  • POLITICS – Rent, Lease or Purchase as many politicians as you can

Leveraging Power and Politics call for Strategic Leadership and Decision Making Leveraging, once accomplished now you have obtained power. Leveraging, provides an opportunity to think differently about power, politics as well as cause-and-effect relationships with respect to leadership, power and influence. The changes that are shaping the nature of work in today’s complex organizations and communities require that we develop the political will, expertise and personal skills to become more flexible, innovative and adaptive. Without political awareness and skill, we face the inevitable aspect of becoming immersed in bureaucratic infighting, parochial politics and destructive power struggles, which greatly retard organizational initiative, innovation, morale and performance, as well as the issues linked to values and ethics, culture, visioning and the management of change. (Kotter 1985)

LAW ENFORCEMENT
Get involved in the process engaging your elected officials to change laws in favor of the Black community.

BLACK MEDIA OUTLETS
As we know, the Media has an enormous amount of power and influence concerning almost every aspect of our lives. It is important that communities create platforms to control the images and programs which our communities are exposed to daily. We want to ensure that they are images that are relatable to a people and or culture, images of power and influence; and most importantly images surrounding wealth, prosperity and upward mobility.

BUSINESS OWNERSHIP – Cooperative Economics
Start a jointly owned enterprise engaging in the production or distribution of goods or the supplying of services, that is operated by its members for their mutual benefit typically organized by consumers or farmers. May also be called a co-op.

POWER AS A MOTIVE
Power is attractive because it confers the ability to influence decisions, about who gets what resources, what goals are pursued, what philosophy the organization adopts, what actions are taken, who succeeds and who fails. Power also gives a sense of control over outcomes, and may in fact convey enhanced control. Particularly as decision issues become more complex and outcomes become more uncertain, power becomes more attractive as a tool for reducing uncertainty.

So, what is the Black Community’s National Agenda? In a world that is getting increasingly smaller and poses the potential of dictatorship opposed to a democracy, we must come to the realization that obtaining wealth is a choice not an option.

In Summary

There is only one color at the bargaining table, the color of America’s currency “GREEN.” To reserve a seat, you must possess wealth, which has the greatest influence. “GREEN” has been the most influential color throughout this Nation’s history. If you find yourself in an economic quagmire, now is the time to leverage and dig yourself out, utilizing the necessary strategies to obtain and secure wealth.

Helpful Tips

How to become debt free in a capitalistic society. For many, easier said than done, however, it is obtainable, here’s how.

  1. The goal should be to pay off mortgages; once you have made the final payment, you can truly attest to true homeownership, everything else is a process. Additionally, work on paying off your vehicles, nothing like having a Title free and clear.
  2. Ensure that you have the proper amount of insurance. Speak to your Insurance Agent in detail to ensure that your policy covers all of you needs, not just burial. A wise man leaves an inheritance to his children and his children’s children. (KJV)
  3. Educate the youth concerning economics and most importantly the FICO system (Credit Reporting) and how quintessential it is to financial success and the acquisition of wealth.
  4. Do not attempt to live above your means; watch your debt to income ratio. Remember, the goal is to be debt free. Don’t spend more than you earn.
  5. Pay off your revolving credit accounts (Credit-Cards) to avoid paying costly interest rates and fees, never touching the principle.
  6. Establish a savings, pay yourself prior to paying anyone else, this will ensure that you have operating capital.
  7. Attend College. Look into research grants which do not require being paid back. This process will assist in keeping down debt, every penny counts.
  8. Diversify your income streams, ensure that you have more than once source of income. In addition to your job you may consider starting a small business on the side.
  9. Be a good steward of your finances
  10. Talk to a reputable stock broker concerning potential investments. It takes money to make money. (money multiplies)

“Let’s make America Great Again” by establishing a National Agenda for Black communities.